Telecom Italia has split off split off NetCo, the business unit for its fixed landline network, which it agreed to sell to US investment firm KKR earlier this month for €22 billion ($24.05bn).

The sale is expected to go ahead in the summer of 2024.

Telecom Italia
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NetCo includes the fixed network infrastructure and related real estate, the management of which it will oversee, the wholesale business, and the entire stake in the subsidiary Telenergia.

The long-awaited deal, which has been backed by Giorgia Meloni's Italian government, was approved by TIM on November 5, with the board voting 11-3 in favor of the deal rather than making it conditional on a vote by shareholders.

KKR valued the assets at €18.8bn ($20.6bn), but the overall value of the deal is as much as €22bn ($24.05bn) based on what can be earned if the grid is merged with that of small rival Open Fiber SpA.

Approval of the sale received criticism from Vivendi, which opposes plans to sell TIM's most valuable asset. Vivendi, a French media group, and Telecom Italia's biggest shareholder with a 24 percent stake, has outlined its disapproval.

Vivendi said that the rights of Telecom Italia's shareholders "have been trampled on." The company is expected to challenge the agreement in court.